Mizo govt pays over Rs one crore penal interest

The Mizoram government paid more than Rs 1.07 crore penal interests under Urban Local Body (ULB) to the implementing agencies due to late release of fund by the state finance department during 2010-11 to 2014-15 as documents from the Centre for the purpose reached late, Finance Minister Lalsawta told the Assembly today.
Lalsawta, replying to a question from Lalruatkima of the opposition Mizo National Front (MNF), said that General Basic Grant and General Performance Grant under the ULB fund were to be transferred to the accounts of the implementing agencies within ten days as per the guidelines of the 13th Finance Commission's Awarded Grants.

"It was almost impossible for the finance department to transfer the ULB fund to the implementing agencies like the AMC during the time-frame as a plethora of problems were there in clearing the files," he said.
He said that the finance department received the documents of release of grants after ten days of dispatch from the Centre.
He said the Treasuries also sometimes withheld the release of fund due to the fear that there would be overdraft as the financial position of the state had been precarious.